2020 has been a tough year for both landlords and tenants in Arizona because of COVID-19 and the subsequent Arizona eviction moratorium that has been active since March.
With the end of 2020 around the corner, many people are wondering what the latest information is on the eviction moratorium in Arizona, as well as what the rental market is going to look like once it’s finally allowed to expire?
Governor’s Ducey’s Eviction Moratorium Is Active Until 10/31
Governor Doug Ducey signed a 120-day eviction moratorium in late March to aid those affected by the COVID-19 pandemic. This eviction order was extended in July until October 31st, 2020.
In addition to Governor Ducey’s executive order (EO), the Center for Disease Control has issued a separate eviction moratorium. The CDC’s moratorium is supposed to protect tenants from eviction due to nonpayment through December 31st, 2020.
To qualify for the CDC’s eviction moratorium, tenants must not make more than $99,000 per year and sign a declaration stating that they are unable to make their rent payments due to a substantial loss of income. They must also pay at least 25% of their monthly rent each month.
It’s important to note both Governor Ducey’s and the CDC’s moratoriums both only protect evictions for those who meet the above criteria and would be evicted due to nonpayment. Evictions due to lease violations, damages, and causes other than nonpayment are all still valid.
Some landlords are challenging the eviction protections in place by taking their tenants to court in order to move forward with evicting them.
Some tenants are getting evicted for nonpayment if they are unable to complete the CDC declaration before the judgment is issued. In other cases, tenants are getting evicted if the landlord can prove that their tenant’s statement on the declaration was “materially inaccurate”.
What Can We Expect Until January 2021?
Governor Ducey’s eviction moratorium may likely be extended until January 2021, providing tenants with eviction protections through the end of the year.
The Governor likely doesn’t want to have mass rental evictions during the holidays. However, even with an extension to the moratorium, evictions will eventually have to be allowed to happen like normal.
Until the eviction moratoriums are ended permanently, we can expect to see more landlords challenge the Governor’s EO, along with the CDC eviction ban,
As of today, landlords, the Multi housing Association, and the Manufactured Housing Communities of Arizona are looking eager to overturn the Governor’s eviction moratorium. The general feeling is that the eviction moratorium is unconstitutional and violates an owner’s contracts with their renters.
In some cities, landlords are winning in the courts and evictions are increasing. This can be seen in Phoenix, where evictions jumped to 2,863 during September. This was an increase from 2,171 evictions in August and 1,768 evictions in July. (Source)
Most Landlords Expecting Foreclosure ‘Avalanche’
Even though evictions are climbing in Phoenix, many rental property owners have seen other Arizona courts decline to hear their eviction cases. Without being able to fill their properties with paying tenants, many landlords will struggle to make their mortgage payments. With little progress on evictions in Arizona, there is concern the state will see a foreclosure ‘avalanche’ in early 2021.
This foreclosure ‘avalanche’ could be damaging to the rental markets as a whole.
Contact GoldenWest Management
At GoldenWest Management, we manage rental properties in Arizona, Nevada, and California. This gives us a firsthand perspective on what’s happening in each of these rental markets.
Our company offers ‘boutique’ style property management. This means, regardless if we manage a large portfolio of investment properties or one rental property, each of our owner clients can count on us treating them like they are our only client.
To learn more about the property management services that we can offer you, contact us today by calling (866) 545-5303 or click here to connect with us online.